HOW TO NAVIGATE THE HOME LOAN PROCESS

From start to finish, TruWest Credit Union is eager to help you successfully navigate the entire home loan process. If you’re the curious sort, or if you simply like to be prepared, below are the steps you’ll need to take when applying for any mortgage or home equity loan.

Organize Your Documents

Documentation is everything when it comes to applying for a home loan, so let’s make sure you have the necessary pieces to start on the right foot. Here is a simple checklist:

Loan Application: Complete and sign the loan application, information sheet, credit authorization and fair lending notice. (When completing the application, if a mistake is made do not use whiteout. Simply cross it out and note the correction.)

Tax Forms: Provide copies of your W2s for the previous two years along with one month of paystubs. If self-employed, provide copies of your tax returns for the previous two years, including all schedules and a year-to-date profit and loss statement.

Rental Properties: If you own a rental property, provide recent rental agreements and tax returns for the previous two years, including all schedules and landlord information.

Financial Statements: To speed up the approval process, provide bank statements for the most recent months along with current statements for stock, mutual funds and IRA/401K accounts, including all blank pages. If any borrower filed bankruptcy, provide the discharge notice, filing and schedule of creditors.

Letter of Explanation: If you are requesting a cash-out refinance, a letter explaining how you will use the refinance proceeds is needed.

Prequalify

Shop Loans and Rates

Be an informed consumer by understanding the differences between home loan options and shopping around for rates. This will give you the essentials needed to pick the right loan for your situation.

Think about how long you plan to keep the loan. If you are looking to sell your home in a few years, consider an adjustable-rate mortgage, which can provide lower payments and flexibility. But if you are in it for the long-haul, a fixed-rate mortgage can offer the comfort of always knowing your payment and an interest rate that doesn’t change over the length of the loan.

Understand the relationship between rates and points. Points are considered prepaid interest and may be tax deductible.* One point is equal to 1% of the loan, so one point